Chicago Wheat Found Friday Strength


Wheat futures finished the last trade day of the week mixed but mostly higher. Chicago SRW futures ended the day 2 ¼ to 8 ¼ cents in the black leaving March with a net weekly loss of just 3 cents. KC wheat futures were fractionally higher at the Friday settle. March KC wheat netted a 23 ½ cent loss for the week’s move. March SRW is now just 4 ¾ cents under the March HRW contract, as July holds a 6 ¼ cent premium. Spring wheat futures finished fractionally mixed to 2 cents weaker on Friday. 

The Commitment of Traders report had managed money funds 1,920 contracts more net short in Chicago wheat, driven by net new selling, for the week at 66,738 contracts as of 2/6. Managed money firms were adding positions in KC wheat, though were only slightly more net short for the week to 33,397 contracts. The funds were net buyers of MGE wheat futures for the week, which reduced their net short by 1,174 contracts to 25,906. 

NOAA’s 7-day QPF has rainfall along the TX/OK border, amounting to as much as 2 ½” for the week. KS and NE will mostly miss out with precip limited to ¼”. 

WAOB updates raised the world wheat production by 830k MT to 785.74 MMT. Trade was raised by 1.15 MMT with Ukraine, Australia, and Argentina grabbing most of the increase. Chinese wheat imports were cut by 500k MT in the update. On net, carryout was 590k MT tighter compared to the expected 500k MT. 

Mar 24 CBOT Wheat  closed at $5.96 3/4, up 8 1/4 cents,

May 24 CBOT Wheat  closed at $5.99 1/4, up 5 1/4 cents,

Mar 24 KCBT Wheat  closed at $6.01 1/2, up 1/2 cent,

Mar 24 MGEX Wheat  closed at $6.84 1/4, up 1/2 cent,

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.